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Revco investors OK deal
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May 28, 1997: 7:41 p.m. ET
Shareholders approve merger with CVS; deal still needs FTC approval
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NEW YORK (CNNfn) - The shareholders of Revco D.S. Inc. on Wednesday approved a $2.8 billion merger with CVS Corp. that will create the nation's second largest drugstore chain.
CVS shareholders approved the deal on Tuesday, and the company said it expects approval from the Federal Trade Commission on Thursday.
"There's nothing written in stone," said Nancy Christal, vice president of investor relations at CVS. "We hope to have FTC approval in time for our close Thursday."
Christal said CVS would release other terms of the deal after the FTC ruling.
Woonsocket, R.I.-based CVS has said it would close Revco's Twinsburg, Ohio headquarters, putting about 1,000 jobs at risk. Christal said CVS planned to hire some Revco employees.
"The 1,000 jobs are definitely on the line," said Revco spokesman Tom Dingledy. "I think we have a lot of talent here."
After the vote Wednesday, Revco shares fell 1/4 to 41-3/4 while CVS climbed 1/4 to 47-7/8 on the New York Stock Exchange.
In February, CVS said it would acquire Revco for $2.8 billion in stock and assume $900 million of debt.
Revco, which operates nearly 2,600 stores in Midwestern, Southeastern and Eastern states, posted $5.4 billion in sales in 1996. CVS, with 1,425 stores in 14 states and the District of Columbia, has a strong presence in the Northeast and the mid-Atlantic regions.
The new chain would be the second largest in the nation, with $13 billion in revenues, but have the largest number of stores.
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